The Andalucía regional government of Spain has awarded two contracts to build the 4km section of tunnel between Las Lagunas and La Cala de Mijas.

These contracts are a part of 532km rail project connecting the cities of Fuengirola and Estepona, which is expected to handle 100 million passengers per year, the Railway Gazette website reports.

One contract includes digging of one bore tunnel and laying of 1,435mm-gauge track under the joint venture of Detea, Obras Suterráneas, Rafael Morales and Vías with €817m.

Another €82m contract includes a second bore tunnel by AZVI and Ferrovial with a provision for an underground station at La Cala de Mijas.